CMPO Step 4

On the Manage Exchange Rate Groups screen, create a rate group.

The rate group links a rate source (selected in step 3) to one or more currency relationships (from United States dollars to Japanese yen in our example).

For each transaction currency you use, create a relationship (and later enter a rate) between those currencies and your functional currency. All purchase order transactions are processed through the functional currency, not directly from transaction currency to pay currency.

Each currency relationship must include your functional currency. For purchase order transactions involving multiple currencies, Costpoint translates the transaction currency into your company's functional currency and then translates that functional currency amount into the pay currency when the purchase order is vouchered and paid. Therefore, in this example, Costpoint translates the transaction amount in yen into the equivalent amount in U. S. dollars, the functional currency.

This screen contains a Rate Change Tolerance % column that you can use to set up alerts to display a warning if a newly entered rate is substantially higher lower than the previous rate. These alerts are active in the Manage Exchange Rates by Date, Manage Exchange Rates by Period, Manage Daily Exchange Rates, and Manage Period Exchange Rates screens. The Import Daily Exchange Rates screen does not provide any notification of large exchange rate fluctuations, but you can print the Upload Daily Exchange Rates report and use it to review the rates.